How is Perth property performing?

by Jayden Fennell01 Jul 2022

Property prices are continuing to rise and the local market is performing very well, says a Perth mortgage broker.

Brokerage Elite Finance Australia owner and senior broker Matthew Posselt (pictured) said he was working with many clients trying to secure a property.

“We have lots of customers trying to bid on properties, however many have been unsuccessful and are still looking,” Posselt said. “Right now, it is a good time to be selling a home in Perth.”

Posselt said his specialty was working with first home buyers. He said many people who rent have been told their landlord was selling up in the current high-priced market, so now was a good time for them to buy.

“There is now a shortage in rental supply as rental vacancies are at an all-time low,” he said.

“However, the market does not seem to have peaked just yet so I would not say people are overpaying.”

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The Perth broker said the city and outer suburbs were all experiencing price growth.

“In the city you find many high rises and apartment buildings, however the construction industry is terrible at the moment with all the delays in building materials and skyrocketing costs,” he said.

“I used to do lots of construction finance, however with building costs rising, people are fearing the build process and switching to buying something established. Existing properties are still attractive for first home buyers as they can still be eligible for government assisted schemes to help them into their new home.”

Posselt said Perth residents preferred purchasing within a 10km radius of the CBD, however with prices continuing to climb, first home buyers in particular were expanding their location search.

“The price point is still competitive under the $1 million mark, however we have seen competitiveness has dropped above the $1 million mark.

“I have found it is taking a little longer for premium properties to sell.”

Posselt said interstate property buyers from areas such as Melbourne and Sydney were enjoying Perth’s house prices.

“We have seen interstate investors snapping up properties sight unseen as rental vacancies are so low and rent returns are so healthy. It is a lot more attractive for these people despite it being such a big commitment buying a property in an unfamiliar market.”

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Posselt said freestanding properties were overall most popular with his clients.

“I am finding my clients want control of their property without engaging strata,” he said.

“Clients are also chasing land, so they are looking at older houses on larger parcels which provide options for renovations, extensions or developments. However, to chase more land, you need to widen your location scope further from the CBD.”

Posselt’s advice to other Western Australian brokers is that it is a big industry, a big market and there’s lots of opportunity.

“My advice is to be active, talk to people, have a strong presence within your community and stand out from the competition by letting people know what you do.”